Northern Pulp signals legal action against N.S. government
October 20, 2021 By Ellen Cools
Northern Pulp says it has taken “the necessary steps to preserve its legal rights” regarding the closure of its mill in Nova Scotia in January 2020. The company is signalling legal action against the Nova Scotia government over $450 million in losses as a result of the closure.
According to CBC News, the Nova Scotia government signed an indemnity agreement with Scott Maritimes Ltd., the mill’s previous owner – it’s now owned by Paper Excellence – in 1995, which protects the mill against loss or damages. It also implies the province would be responsible for the cost of cleaning up Boat Harbour and building a new treatment facility.
The company has made claims under the province’s indemnity for $100 million in losses, which they would use to help restart the mill.
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